Southwest Airways and its pilots union have reached a tentative deal on a brand new, five-year labor contract that will increase wages 50 % over the subsequent a number of years and improve retirement advantages.
The union’s board unanimously permitted the deal, which it stated was price $12 billion, on Wednesday, sending it to the greater than 11,000 union members, who’ve till Jan. 22 to solid a vote.
The deal would offer advantages which can be much like these secured by pilots unions on the three different giant U.S. airways in separate negotiations this yr. Pilots have had the higher hand in labor talks as a result of they’re in excessive demand amid the robust restoration in air journey after a steep decline within the early a part of the pandemic.
Capt. Casey Murray, the president of the union, the Southwest Airways Pilots Affiliation, stated that the airline had began to lag behind its friends in attracting and retaining pilots in recent times. “What this contract was about was closing that hole in order that we might recruit and retain competitively,” he stated in an interview.
Southwest welcomed the deal. In an announcement, Adam Carlisle, vp of labor relations for the corporate, stated that the settlement would ship “industry-leading” pay charges.
Relations between Southwest and the union have been contentious at instances. In 2021, the union sued the airline over modifications made by administration through the pandemic. Final yr, the corporate and union entered federal mediation over contract talks. In Could, Southwest’s pilots voted to approve a strike for the primary time within the firm’s historical past, based on the union, although federal legislation prohibits pilots from strolling off the job with out first pursuing mediation and different steps.
Different pilots unions have achieved massive beneficial properties. In March, pilots at Delta Air Traces permitted a contract that will enhance wages 34 % over a number of years. Pilots at American Airways this summer season permitted a contract that grants them a 46 % increase, and pilots at United Airways permitted a 40 % pay improve.
All three contracts included enhancements to trip and retirement advantages and higher protections towards last-minute reassignments. Southwest’s deal will embody related enhancements. The brand new contracts on the massive airways have additionally elevated strain on smaller carriers to enhance pay and advantages to maintain pilots from leaving for bigger employers.
Pilots at massive airways simply earn six-figure salaries. Essentially the most senior pilots, who usually fly bigger planes on longer routes, can earn a number of hundred thousand {dollars} a yr. Labor and gasoline account for about half of airways’ working bills. In latest months, airline executives have warned that such prices might push down their income.
If permitted, the brand new Southwest deal would prolong by December 2028. The contracts at Delta, American and United are all in impact by a minimum of 2026.
There is no such thing as a assure that Southwest’s pilots will approve the deal. The airline’s flight attendants rejected a deal this month, sending negotiators again to the desk. Flight attendants at American and United are additionally negotiating new contracts.
